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II. Useful Caselaws:
1. Commissioner of Income Tax Vs. Gita Duggal, ITA No. 1237/2011, Judgement Delivered on: 21.02.2013, High Court of Delhi
Whether
Buildings or lands appurtenant thereto, and being a residential house,
shall be construed to mean a single residential house?
Held:
“Section 54/54F uses the expression “a residential house”. The
expression used is not “a residential unit”. This is a new concept
introduced by the assessing officer into the section. Section 54/54F
requires the assessee to acquire a “residential house” and so long as
the assessee acquires a building, which may be constructed, for the sake
of convenience, in such a manner as to consist of several units which
can, if the need arises, be conveniently and independently used as an
independent residence, the requirement of the Section should be taken to
have been satisfied. There is nothing in these sections which require
the residential house to be constructed in a particular manner. The only
requirement is that it should be for the residential use and not for
commercial use.
We do not
think that the fact that the residential house consists of several
independent units can be permitted to act as an impediment to the
allowance of the deduction under Section 54/54F. It is neither expressly
nor by necessary implication prohibited. For the above reasons we are
of the view that the Tribunal took the correct view. No substantial
question of law arises for our consideration. The appeal is accordingly
dismissed with no order as to costs”.
(Please click here for judgment)
2. The
Director of Income Tax (International Taxation), Delhi Vs. Goodyear
Tire and Rubber Company, W.P. (C.) 8295/2011, Judgement Delivered on:
27.02.2013, The High Court of Delhi
No tax
liability on either the USA Company or the Singapore company in case of
transfer of shareholding of the USA Company to its 100% subsidiary in
Singapore without consideration under section 10(38) of the Income tax
Act, 1961.
Held: “It
is apparent that income arising from the transfer of a long term
capital asset, if it is an equity share in a company or a unit of an
equity oriented fund, where the transaction of sale of such equity share
is chargeable to securities transaction tax, then such income would be
exempt. To put it in plain language, if income arises out of the
transfer of a long term capital asset being an equity share in a listed
company, the said income would be exempt under section 10(38) of the
said Act. There is no doubt that the shares of Goodyear India Limited
are listed shares and therefore even if a consideration had been charged
for the transfer of the 74% share, the income arising therefrom would
be exempt by virtue of the provisions of section 10(38) of the said Act.
The writ petition is dismissed”.
(Please click here for judgment)
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